Stocks finished mixed Monday as investors awaited further geopolitical updates. Attention is on the upcoming G-20 summit, where President Trump and Chinese President Xi Jinping plan to resume trade talks Friday. The S&P 500 dipped 0.2%, hovering just below its record high reached last Thursday. The Dow added 8 points, while the Nasdaq Composite was down 0.3%. U.S. equities remain on pace for their best June in decades amid the prospect of Fed rate cuts.
Six of 11 S&P 500 sectors finished in negative territory. Energy shares led decliners, down 0.9% on news of fresh U.S. sanctions on Iran. Materials and Technology stocks outperformed. In M&A news, Caesars Entertainment surged 14.5% after the casino operator agreed to be acquired by Eldorado Resorts for $17.3 billion, including debt. Elsewhere, Bristol-Myers Squibb fell 7.4% amid reports the company plans to divest its Otezia business unit and has delayed its proposed merger with Celgene by four to six months. In other corporate news, industrial companies United Technologies and Deere each advanced 1.1% and 1.6%, respectively, on the heels of analyst upgrades.
Treasuries strengthened, with the yield on the benchmark 10-year note sliding four basis points to 2.01%. On the data front, a gauge of national economic activity from the Chicago Fed showed an improvement in May compared to the prior reading, whereas regional manufacturing data from the Dallas Fed unexpectedly weakened, falling to a three-year low. In commodities, WTI crude advanced 0.8% to $57.70/barrel, while COMEX gold rallied 1.6% to $1,418.60/ounce amid a weaker dollar.